Active broad-market exchange-traded funds at mid-day:
SPDR S&P 500 (
iShares Russell 2000 Index (
PowerShares QQQ Trust, Series 1 (
iPath S&P 500 VIX Short Term Futures TM ETN (
): -1.7%, near year lows
iShares MSCI Emerging Markets Index (
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM, IVV and
others, are mostly firmer. Actively traded PowerShares QQQ (
) is up 1.6%.
U.S. stocks continue to rally, the Dow Jones Industrial Average
hit 13,000 for the first time since May 8. Investors are optimistic
as they look forward to moves by the European Central Bank and the
U.S. Federal Reserve that are expected to stimulate the respective
economies in these regions. Earlier, German Chancellor Angela
Merkel and French President Francois Hollande reaffirmed their
commitment to keeping the EU together. The enthusiasm in market
sentiment was not dented by the report that consumer sentiment in
July fell to a year low, and that the economy grew a modest 1.5% in
the second quarter, less than the 2% growth in the previous
Winners and Losers
Select Financial Sector SPDRs (XLF) is up 1.1%. Direxion Daily
Financial Bull 3X shares (FAS) is up 3.3%. Its bearish counterpart,
FAZ, is down 3.4%.
Actives in the sector are mostly firmer: Goldman Sachs (GS), up
1.2%; Morgan Stanley (MS), up 1.2%; and Citigroup (C), up 1%. Bank
of America (BAC) is flat.
Barclays PLC (BCS) ADRs are up 8% after it reported Q2 adjusted
pre-tax profit was GBP 1.78 bln, up from GBP 1.72 bln. On an
adjusted per share basis, earnings were GBP 0.082 or $0.13,
compared with the prior-year period's GBP 0.089 or $0.14. Analysts
polled by Capital IQ were looking for GBP 0.05 or $0.08.
Additionally, BCS chairman, Marcus Agiu apologized for the
company's involvement in the LIBOR rate rigging scandal.
Legg Mason (LM) is down near 2% after it reported Q1 adjusted
earnings of $0.64 per diluted share, which includes one-time items
and may not be comparable to the Capital IQ consensus of $0.32.
Revenues were $630.7 mln, versus the analyst estimate of $647.84
mln. In the same period last year, the company reported adjusted
EPS of $0.88 on revenues of $648.6 mln.
Tech actives are in the green: Apple (AAPL), up 0.8%; Microsoft
(MSFT), up 1.3%; Intel (INTC), up 1%; Google (GOOG), up 2.4%; Cisco
(CSCO), up 1%; and Yahoo (YHOO), up 1.3%.
Facebook (FB) shares are down 10% and have hit a new year low of
$22.28. Late Thursday, FB reported Q2 revenue of $1.18 billion, up
from $895 million in the year ago quarter and ahead of the analyst
consensus of $1.14 billion on Thomson Reuters. EPS was $0.12, flat
with year ago levels and even with expectations.
OCZ Technology Group, Inc. shares (OCZ) are up near 20% at $6.50
but off a day high $7.05 on continued rumors that the company is a
takeover target of Seagate Technology (STX). Today, the Register
said STX may pay $475-$550 million for OCZ. STX shares are down
AuthenTec (AUTH) soared 65% and hit a new 52-week high of $8.83.
Reuters reported that the company agreed to be acquired by Apple
(AAPL) for about $356 million. AAPL's offer was $8 per AUTH share,
which represents a premium of 58% over AUTH's Thursday close of
$5.07, the report added.
Celestica (CLS) is up near 6% after it reported Q2 revenue of
$1.744 billion, down from $1.829 billion in the year ago quarter
but ahead of the analyst consensus of $1.698 billion on Capital IQ.
Earnings were $0.22, vs. $0.27 per share last year and the Street
view of $0.24 per share. For Q3, the company expects revenue in the
range of $1.6 to $1.7 billion and EPS of $0.17 to $0.23. The Street
is at $1.7 billion in revenue and earnings of $0.25 per share.
ETFs in the space are firmer: iShares Dow Jones US Technology
ETF (IYW), up 1.3%; iShares S&P North American Technology ETF
(IGM), up 1.57%; Technology Select Sector SPDR ETF (XLK), up 1.4%
and iShares S&P North American Technology-Software Index (IGV),
SPDR S&P Semiconductor (XSD) is up 1.30%; likewise,
Semiconductor Sector Index Fund (SOXX) is up 1.3%.
SPDR S&P International Technology Sector ETF (IPK) is
Dow Jones U.S. Energy Fund (IYE) is up 0.8% while Energy Select
Sector SPDR (XLE) is up 0.9%.
ATP Oil & Gas Corp. (ATPG) is down 30% and hit new 52-week
lows on rumors that its bondholders are preparing for a potential
restructuring, organizing a group to represent their interests,
writes Bloomberg Businessweek.
Chevron Corp. (CVX) is off 0.2% after it reported Q2 earnings of
$3.66 per share, ex one-time items, versus the analyst consensus of
$3.24. Revenues were $62.61 bln, versus the analyst estimate of
$68.56 bln. In the same period last year, the company reported EPS
of $3.85 on revenues of $68.95 bln.
Arch Coal (ACI) is up more than 20% after it today reported a Q2
loss of $0.10 per share, ex one-time items, versus the Capital IQ
consensus of $0.18 loss per share. Revenues were $1.06 bln, versus
the analyst estimate of $1 bln. The company said that it expects
2012 thermal sales volume of 128 mln - 134 mln tons. Met coal sales
volume is expected to now be 7.5 mln tons, down from 8 mln - 8.5
Crude was up around 0.6%, while natural gas was down near 2%.
United States Oil Fund (USO) is up 0.8%. United States Natural Gas
Fund (UNG) is down 2.1%.
Gold and silver were both up around 0.1%; Among rare metal
funds, SPDR Gold Trust (GLD) is up 0.1% while iShares Silver Trust
(SLV) is down 0.1%.
ETFs are seeing gains in the mid-day: Consumer Staples Select
Sector SPDR (XLP), up around 1% and hit new yer highs; iShares Dow
Jones US Consumer Goods (IYK), up less than 1%; and Vanguard
Consumer Staples ETF (VDC), up 1% and has hit year highs.
SPDR S&P Retail (XRT) is up 2%; PowerShares Dynamic Retail
(PMR), up 1.2%; and Market Vectors Retail ETF (RTH), up 1.5%,
reaching a new year high of $43.11.
Starbucks (SBUX) is down 10% after it reported late Thursday Q3
revenue of $3.3 bln, in line with the analyst consensus on Capital
IQ. EPS was $0.43, vs. expectations of $0.45 per share. For Q4, the
company expects revenue growth of 10% to 12% and EPS of $0.44 to
$0.45 per share. The Street is at $0.48 per share.
Newell Rubbermaid (NWL) is up 1.41% after reporting Q2 earnings
of $0.47 per share, versus the Capital IQ consensus of $0.45.
Revenues were $1.52 bln, meeting the analyst estimate of $1.52 bln.
The company reaffirms FY12 EPS of $1.63 - $1.69, ex non-recurring
items, in-line with the $1.67 consensus. The company lowered its
revenue growth forecast to flat to 1%.
Power Play -
ETFs in the sector are logging in gains: Health Care SPDR (XLV),
up 2.2% to $38.70, near its 52-week high of $38.84; iShares NASDAQ
Biotechnology Index (IBB), up 2.5%, touching new year highs;
Vanguard Health Care ETF (VHT), up 2% to near year highs; and
iShares Dow Jones US Healthcare (IYH), up 1.54%.
Medifast (MED) is up 27.5% and touched new year highs. In
yesterday's after hours session, the company reported Q2 2012 net
revenue of $93.6 million, up from net revenue of $78.3 million in
the second quarter of the prior year. Net income for the period,
ex-items, was $2.8 million, or $0.20 per diluted share, compared to
net income of $5.9 million, or $0.41 per diluted share, for the
comparable period last year. The Capital IQ analyst consensus
estimate anticipated revenue of $90.45 million and EPS of $0.38,
which may not be comparable. The company expects third quarter 2012
net revenue to increase in the range of to $88 - $91 million, with
EPS in the range of $0.37 - $0.40, versus the current consensus of
Amgen (AMGN) is up 4.5%, touching new 52-week highs. It reported
late yesterday Q2 revenue fo $4.477 bln, well ahead of the analyst
consensus of $4.08 bln on Capital IQ. Adjusted EPS was $1.83, vs.
expectations of $1.54 per share. For 2012, the company is guiding
for revenue of $16.9 to $17.2 bln and EPS of $6.20 to $6.35 per
share. The Street is at $16.37 bln in revenue and earnings of $6.15
Merck (MRK) is up 3.8% and hitting new year highs. Earlier, it
reported Q2 EPS of $1.05, vs. the analyst consensus of $1.02 per
share on Capital IQ. Sales were $12.3 bln, ahead of expectations of
$12.1 bln. The company reaffirmed its 2012 EPS target of $3.75 to
$3.85 per share. The Street is at $3.82 per share.